Finance Brokers chief says budget tough but right – debt has to be repaid

The chief executive of the peak body representing the nation’s finance brokers says his industry is more aware than many others, that debt has to be repaid.

Finance Brokers Association of Australia CEO Peter White gave the federal budget the thumbs-up and urged Australians to remember that the current government did not create the national debt.

“A $657 billion debt with an interest bill that would make your heart stop isn’t easy to get rid of,” he said.

“Although there are areas of the budget which are not the most desired, this is the Government’s plan to pay off their debt, like all of us have to pay off ours.”

Mr White said the previous Labor Government did not seem to have any plan to pay off the debt, forcing action now.

“It appeared that the previous government spent to excess, which was never good for the long term future of Australia.”

While Mr White is concerned about changes to the fuel excise, that “will impact households and businesses”, he commended the Government for taking action “that will create jobs and employment around the country and support and grow our educational standards”.

“The increase in pharmaceutical scripts and trips to the doctors are not the best outcomes for some families but we must keep in mind that we are still more affordable than many areas of the world like the USA.”

He said the reduction in company tax was beneficial to business and incentives for employing people over 50 will boost employment.

“The unemployment measures are a good move – “earn or learn”. What could be fairer? It invests in our future, reduces pressure and helps remove and direct those who wrongly sit on government benefits.”

He said while he is concerned about the impact some measures will have on household budgets and the ability to meet mortgage repayments, the budget must be considered with a balanced view.

“There are many areas where money should be spent and increased costs should not apply, but, until the books are balancing out, the belts need to be tightened.”